Earlier this week, the Senate passed legislation that will eliminate a significant tax penalty on employers who bypass Affordable Care Act rules by reimbursing their employees for the cost of health insurance premiums. Previously, employers found in violation of the rule were subject to fines of up to $100 per day, per employee, maxing out at $36,500 a year.

The new legislation, endorsed by President Obama, will permit business owners to reimburse employees for the cost of individual health insurance premiums or medical visits.